Posted by Nate on February 22, 2001 at 10:59:18:
No, the finance charges would be considered interest expenditures, not capital expenditures.
However, if you are flipping a property (buying as a dealer for resale, with no intention of holding it long term), I would assume that your taxable profit would be calculated as selling price less ALL expenses (including interest etc.) If you’re not holding the property long term and have no intent to claim any depreciation, whether something is a capital improvement (vs an expense) is not material.
I am not an accountant, so no guarantees this is correct. Just my layman’s interpretation.